NEW YORK, Feb. 2, 2021 /PRNewswire/ -- On January 7, 2021, YPF S.A. ("YPF" or the
"Company") launched exchange offers in respect of all seven series
of its notes (collectively, the "Exchange Offer"). The
Exchange Offer was a highly ambitious effort by the Company to
extract concessions from its international creditors. The Ad
Hoc YPF Bondholder Committee represented by Dechert LLP and DLA
Piper Argentina (the "Dechert Group") promptly and forcefully
provided its feedback to the Company through a letter dated
January 10, in which it cited some
grave concerns regarding the original offer.
The Exchange Offer has since been amended on three occasions –
on January 14, January 25, and most recently, February 1 – to incorporate feedback from the
Dechert Group as well as other holders of YPF's notes.
Through these amendments, the Exchange Offer and the underlying
commercial terms have been significantly improved, bringing the
Exchange Offer in-line with market standards. The Steering
Committee of the Dechert Group (the "SteerCo") are encouraged by
the Company's good faith efforts to accommodate the demands of its
investor base, and expect that such improvements will go a long way
towards convincing international creditors to continue investing in
YPF.
The SteerCo welcomes the improvements to the economic terms of
the Exchange Offer that have been made by the Company ahead of the
expiration date of February 5, which
it understands cannot be extended. The SteerCo recognizes, in
particular, the marked enhancements to the consideration available
to the holders of the 8.5% Notes due 2021 (the "2021 Notes"), as
noted below, and observes that any further improvements look
difficult to achieve due to the combination of timing constraints
and the existing capital controls in Argentina. In these
circumstances, the SteerCo considers the improved terms announced
by the Company worthy of serious consideration by the holders of
the 2021 Notes. Indeed, the SteerCo is aware that certain
large holders of the 2021 Notes, both within the Dechert Group and
outside of it, plan to tender their 2021 Notes. In total, the
Dechert Group represents well over 25% of all of YPF's notes across
the seven series.
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Summary of
enhancements made to 2021 Notes
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Cash
payment
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• Increased cash
payment from US$157 to US$ 283 per $1,000 of 2021 Notes.
• Early bird deadline to receive
cash payment removed.
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Coupon
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• The two year
interest holiday on the New Secured 2026 Notes was abandoned and
instead interest to accrue at 4% from Settlement to December 31,
2022.
• The interest
rate thereafter increased from 8.5% to 9%.
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Covenants
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• Covenant
package under the New Secured 2026 Notes enhanced, including in
particular limiting the Company's ability to make certain
restricted payments.
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Share
Pledge
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• A new pledge
over 50% of the total shares of YPF Energía Eléctrica
SA.
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Collateral
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• Increased the
amount of the cumulative twelve months export collections required
to flow through the Export Collection Account from 110% to 120% of
the principal and interest payments due within twelve (12) months
of the date of determination.
• Increased the cash balance required to be
held in the Reserve and Payment Account to 125% of the principal
and interest due on the two (2) next succeeding quarterly Payment
Dates.
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Amortization
schedule
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• New Secured
2026 Notes repayable in thirteen instalments on February 12, May
12, August 12 and November 12 of each year from February 12, 2023
to maturity.
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Additional
Notes
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• No additional
New Secured 2026 Notes can be issued after the Settlement
Date.
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SOURCE YPF S.A.